Forums: Discussions for entrepreneurs and small business.

Hi, We are at a loss. We have a great business Idea, a proven product in an industry that I helped create for some one else over the last two years. We want to capitalize on what I did for the other company and starting our own business. We do college entertainment and charge a minimum of $3500 for a 6-hour day. The company will make over $2000 in profits per show. I did 142 shows last year and could do 80 shows or more in our first year. That is $280,000 and does not even count the retail we could do over Christmas if we can start now.
Our problem is we need $100,000 in equipment plus $10,000 in inventory. If we go with leasing the equipment we can get started for $50,000.
I worked in the manufacturing and installing of Office Furniture Systems for 15 years and in 2000 lost my job, in the next several months lost everything else we had. Bankruptcy, and then a repo of our mobile home, so our credit is in the toilet. How do we get funding when the SBA tells me we are not fundable and we don’t need enough money for Angels or VC’s to want to help.
We are willing to reward some one very well for a one to three year investment but can not find a person who wants to touch anything other than real-estate.

Sincerely,
Cash Hungry and his wife

Crystalguy -

A SBA loan is just about the cheapest source of funds around and often one of the most difficult loans to acquire.

That said, there are a number of ways to fund a new business besides the SBA. You mentioned one - equipment leasing.

I agree that your business is not a candidate for VC - for several reasons. That would also eliminate the "Professional" angels as a viable source. However, you may be able to aquire equity capital from "private investors" with the right message, language and offer.

All the best,

Robert Johnson

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

If you don`t need enough for angels or VCs the best place to get your funds is from your future customers.  I`m not sure who that would be for you but you have to think outside the box on this one.  Perhaps look to those connected to your future customers.

try www.prosper.com

they offer person to person financing

I have now logged on to the prosper site, I agree this site is another great way for people to locate funding for their dreams.  It has people for all types of credit.  Go to the site and you will find information on interest rates, credit levels, and how to look for funding.

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Rachael Theragood No one can make you feel inferior without your consent. ~~Eleanor Roosevelt~~

If you have crappy credit and/or you cannot secure a co-signer, you won`t get anything. Thats what I`ve learned these past 4 months.

Assuming you borrow the $250 K - the monthly payment would be over $5000 (5 years @10% interest) So you need to show that the business can service that level of debt. Generally this involves creating a business plan includng a basic financial model.

 

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com